Stable companies strengthen further on the promotional gift market

When the crisis hit us, some predicted the collapse of the advertising market, saying that it would be the first sector where companies would start to economise. Others expected an increased role for marketing since competition would be fiercer. Who was right? Let’s find out by examining the promotional gift segment. According to Győző Sauer, 3L Gift Kft.’s sales director the crisis did have a negative effect on the market at the end of last year. – Small and medium sized enterprises order less business and promotional gifts, if any. Large companies would like to buy more on the same budget – says Ferenc Keresztesi, managing director of Present Store Kft. He sees a radically changing market, the cake has become smaller and many companies decided to quit. Present Store Kft. managed to increase sales compared to the previous year, but they had to work twice as hard for this. According to Éva Váradi, purchasing and marketing manager of Golding Reklámajándék Kft., promotional gift companies in other European countries are also struggling because of the crisis. Niche markets’ role is increasing, for instance Magnetta Kft. designs and produces promotional magnetic foils and magnets. Marketing manager Cseperke Zsuzsanna Tóth thinks that products with a function (registers, bookmarks, etc.) will continue to grow. A key to survival could be diversification, in terms of both services and clients. For instance, 3L Gift Kft. have also been acting as a consultant in the past two and a half years. At the time of crisis price becomes the most important decision-making factor. According to Magnetta Kft.’s marketing manager, companies intend to spend less without decreasing the number of gifts, opting for smaller sized products. Éva Váradi sees a shift toward individually produced gifts and observes that deadlines are becoming shorter; the latter trend improves the market position of companies with storing facilities. Which products are the most popular? Useful gifts like pens or USB flash drives. At the same time, Ferenc Keresztesi considers it important to come out with new ideas and products every year, 40-45 percent of their annual catalogue includes new products. Győző Sauer expects leisure and travel related products to be the most popular this summer. Environmental protection is the main trend that defines innovation. – The selection of products made of biologically degradable and recyclable materials expands, but these are still a bit costly for the domestic market.